Enhancing Upward Extension Effectiveness: The Roles of Brand Architecture and Need for Uniqueness

Abstract

While brand architecture is recognized as a significant strategy for line extension, its impact on the consumer response to upward extensions remains underexplored. Based on uniqueness theory, this study examines if consumers' need for uniqueness (NFU) moderates the impact of brand architecture on their purchase intention towards upward extensions and explores the underlying psychological mechanisms. Three scenario-based experiments were conducted, and the data were analyzed using ANOVA and bootstrapping analyses. The results from Study 1 (n = 232) and Study 2 (n = 249) reveal that consumers with higher NFU express stronger purchase intention for upward extensions with a sub-brand (vs. a direct brand) architecture, whereas those with lower NFU express no difference in their purchase intention for upward extensions with different architectures. Furthermore, Study 3 (n = 193) demonstrates that the interaction between brand architecture and NFU affects consumers' purchase intention through mediation by signaling effectiveness and perceived novelty. Based on these findings, theoretical and managerial implications are discussed.